What the "One Big Beautiful Bill" Means for Your Money

Matthew Barker |

The much-talked-about One Big Beautiful Bill has officially passed—and with it, a wave of tax and financial planning changes that could affect everything from your paycheck to your retirement contributions.

Some early proposals survived. Others didn’t. But now that the dust has settled, here are a few of the most impactful updates—and what they might mean for you.

The Tax Cuts from 2017 Are Here to Stay

First up: the permanent extension of the 2017 Trump tax cuts. This means that the current individual income tax rates and the higher standard deductions we’ve become familiar with are sticking around. In fact, the standard deduction is even increasing slightly, which could be a meaningful change for filers across income levels.

No Tax on Tips and Overtime—Up to $12,000

Hourly workers, take note: tips and overtime pay are now tax-exempt up to $12,000 per year. This is a big win for those working extra shifts or in industries like hospitality and retail, where tips form a large portion of earnings.

New Deductions for Seniors—With a Social Security Boost

Seniors get a fresh win, too. There’s a $6,000 deduction for individuals age 65 and older, or $12,000 for joint filers—designed to help offset taxes on Social Security income.

While this benefit phases out for higher incomes and only lasts through 2028 for now, it may be a significant help to many retirees, especially those who rely on Social Security as a major part of their income.

SALT Cap Raised to $40,000

The State and Local Tax (SALT) deduction cap—previously limited to $10,000—has now been raised to $40,000. That’s a huge change, particularly for taxpayers in high-tax states (though maybe less impactful in Florida, where there’s no state income tax).

Still, for those who pay substantial property or income taxes at the state level, this expanded cap could mean real savings.

A Revival of Business Tax Breaks

If you own a small business or work with one, here’s some good news:
Bonus depreciation and R&D expensing provisions are back through 2029. These tax incentives make it easier to deduct investment costs right away rather than spreading them out over time—something many business owners have missed.

Car Loan Interest? Now Deductible

A surprising addition: up to $10,000 per year in car loan interest is now deductible, even if you don’t itemize. This above-the-line deduction is a big deal, especially as auto loan interest rates remain elevated.

Enter the MAGA Account

One of the more headline-grabbing features of the bill is the introduction of MAGA accounts—a new kind of custodial savings account for children under 18.

These accounts have a $5,000 annual contribution limit, and parents welcoming a new child may be eligible for a $1,000 “federal seed” deposit to jumpstart savings. It’s too early to tell how widely adopted this program will become, but for young families, it could be a great planning opportunity.


What's Missing? You.

Of course, how these changes affect you depends on your income, life stage, and financial goals. That’s why personalized financial planning is more important than ever.

Whether you’re reviewing your tax strategy, retirement income plan, or small business finances, don’t leave it to guesswork.

Let’s build a plan that fits your life—not just the latest headlines.